Berlusconi, younger brother of the club president Silvio, was attending a political rally for when he made the comments that were caught on video and shown on the website of Italian newspaper La Repubblica.

He described Balotelli, who is black, as "n------- di famiglia," an Italian slur meaning "the family's little n-----."

The incident transpired after Milan's midfielder Kevin Prince-Boateng was congratulated by Silvio Berlusconi for walking off the pitch after being racially abused in January by Pro Patria fans.

He added that 'Milan will leave the field' when similar incidents happen again.

Balotelli signed for Milan from Manchester City during the January transfer window for around £20 million and scored twice on his debut as they beat Udinese 2-1.